S&P places evaluation for Adani Transmission under review

Standard & Poor Global Ratings said it has placed its environment, social and governance evaluation for the Adani Transmission Ltd (ALT) "under review".

S&P Global Ratings is an American credit rating agency (CRA). It is a leading index provider and data source of independent credit ratings.

When monitoring environment, social and governance (ESG) evaluations, S&P uses the term "under review".

"We will closely monitor developments, including any investigations by the Indian regulators and any additional disclosures by the Adani group," S&P said in a statement on Thursday, reports our New Delhi correspondent.

The S&P decision came after the Hindenburg Research report in January accusing the Adani group of manipulating its stocks prices and resorting to accounting fraud, allegations denied by the Indian conglomerate.

The ATL is India's biggest private power transmission and distribution company which is owned by the Adani family with a reported 75 per cent stake, with the balance in free float.

In FY22, ATL operated 18,795 circuit km of electric transmission lines. It also owns a 500MW coal-fired power plant.

"The allegations related to group governance and disclosures may affect the appetite of fund providers and business partners in supporting ATL's growth. This may raise financial and operational risks for the company," S&P said.

Global index provider MSCI had last week reduced its weightage for four Adani Group stocks, including ATL, in its widely-tracked indexes after reviewing the shares in free float category. The other three companies are Adani Enterprises, Adani Total Gas and ACC.